Comcast's overall capital expenditures went up 2.3 percent, from $9.6 billion in 2017 to $9.8 billion in 2018. But that company-wide capital expenditure number includes the Comcast-owned NBCUniversal, which spent $1.7 billion in 2018, a 15.2 percent increase, "primarily reflecting investment at Theme Parks," Comcast said.

The cable capital expenditure statistic thus provides a more accurate picture of whether Comcast increased or decreased investment in its broadband service. Cable capital expenditures as a percentage of Comcast's cable revenue dropped from 15 percent in 2017 to 14 percent in 2018.

Clarification: While Comcast's overall cable capital investment fell, Comcast said it increased spending on line extensions—the "costs associated with entering new service areas," and "scalable infrastructure," which provides additional bandwidth and other service improvements.

Comcast Cable's capital costs went down for "customer premise equipment," which includes gateways and other Internet equipment used inside customer homes. Comcast Cable's capital costs also went down in the category of "support capital," which includes "land, buildings, vehicles, office equipment, tools and test equipment."

The overall result was a decrease in Comcast Cable's capital expenditures, a benchmark that FCC Chairman Ajit Pai has cited repeatedly in his argument that net neutrality rules caused broadband providers to reduce investment.

Comcast Cable's capital spending should have risen in 2018 if predictions from Pai had been correct. Pai's net neutrality repeal took effect in June 2018. But the vote to repeal net neutrality rules was in December 2017, and Pai claimed in February 2018 that the repeal was already causing increased broadband investment.

Broadband industry lobby group USTelecom also claimed that capital investment grew in 2017 because of the anticipated net neutrality repeal and other deregulatory moves. In December 2017, Comcast said the net neutrality repeal would allow for "more competition in the marketplace and increased investment and innovation."

Yet Comcast cable capital expenditures dropped year over year in each of the first three quarters of 2018. The expenditures did rise year over year in the fourth quarter, from $2.15 billion to $2.32 billion, but it wasn't enough to offset the full-year decline.

The corporate tax cut implemented as 2018 began also didn't stop job cuts at Comcast and AT&T, despite promises that the tax cut would create new jobs.

Charter and Verizon lowered investment, too

Comcast isn't the only ISP that lowered capital investment last year. Charter and Verizon both said in 2018 that they were reducing capital expenditures.

Charter and Comcast are both expected to reduce cable capital expenditures in 2019, according to MoffettNathanson estimates cited in a Light Reading article yesterday. Cable companies are planning upgrades to full duplex networks, but "the investment for that move will be incremental and is not expected to be anywhere near the level of spending that went into the initial DOCSIS 3.1 upgrades," Light Reading wrote.

The FCC's justification for repealing net neutrality rules was almost entirely based on Pai's prediction that deregulation would cause broadband capital expenditures to rise. That hasn't happened with Comcast, the nation's bigger home Internet provider. Comcast's extensive use of data caps, which the FCC hasn't tried to stop, could also help the company limit spending on network capacity upgrades. Comcast used to face its own set of net neutrality requirements because of conditions placed on its purchase of NBC, but the FCC-imposed merger conditions that prohibited blocking and throttling expired in January 2018.

Further Reading

Annual capital spending isn't necessarily a good indicator of whether broadband is expanding or getting better. Costs often go down as technology advances, after all. Network spending tends to be "lumpy," rising and falling in conjunction with technology upgrade cycles. Wireless network spending is likely to increase going forward as carriers upgrade from 4G to 5G networks, but the 5G upgrade would happen regardless of whether net neutrality rules are in effect.

The net neutrality repeal hasn't closed broadband gaps in rural areas, where industry trade groups say they won't expand service unless the government gives them more direct funding. As the trade groups explained, the key factor is that ISPs won't build in sparsely populated areas where they don't expect to get a high return on investment.

The loss of net neutrality rules might help ISPs make more money in places where they already offer service. But the trade groups' warnings about rural broadband suggest that the repeal wasn't enough to make Pai's prediction of "better, faster Internet access and more competition" come true.

Here's another (equally sick) take: without regulations and/or competition, businesses have no financial reason to invest in infrastructure or R&D. They can sit on their product/service and know that there's nothing their customers can do about it -- the internet is a quintessential and indispensable part of the modern world. They are the gatekeepers and are using their position to abuse and fleece the public (just like AT&T and telephones a century ago...gee, how did that end again??).